HomeMy WebLinkAboutCC Reso 2024-34 - Approving Third Phase Agrmt for Power Purchase with Grace Orchard Energy Center RESOLUTION NO. 2024-34
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE THIRD PHASE
AGREEMENT FOR POWER PURCHASE AGREEMENT WITH GRACE ORCHARD ENERGY CENTER,
LLC
WHEREAS: The City of Ukiah Electric Utility has adopted policies that are designed to increase the
amount of energy that is provided to retail customers from eligible renewable energy resources and
carbon free resources to comply with the California Renewable Energy Resources Act and other
applicable requirements; and
WHEREAS: Grace Orchard Energy Center, LLC (Grace) has agreed to sell energy, capacity rights, and
associated environmental attributes from a 50MW solar photovoltaic facility to Northern California
Power Agency(NCPA), on behalf of the City of Ukiah and other participating NCPA members; and
WHEREAS: Terms and conditions for the transaction are set for the in the Power Purchase Agreement
(PPA) between Grace Orchard Energy Center, LLC and Northern California Power Agency; and
WHEREAS: The PPA includes a guaranteed commercial operation date of December 1, 2027, with a
term of 20 years; and
WHEREAS: During the term of the PPA, NCPA will schedule and dispatch the Grace project, and Grace
will own, operate, and maintain the project;and
WHEREAS: To enable NCPA to enter into the PPA on behalf of the City and other participating members
(individually referred to as a "Participant", and collectively referred to as the "Participants"), pursuant
to the terms and conditions of the Amended and Restated Facilities Agreement, the Third Phase
Agreement provides all means necessary for NCPA to fulfill obligations incurred on behalf of NCPA and
the Participants pursuant to the PPA,and to enable and obligate the Participants to take delivery of and
pay for such electric capacity and energy and to pay NCPA for all costs incurred for undertaking the
foregoing activities.; and
WHEREAS: The Third Phase Agreement specifies the rights and obligations of NCPA and the Participants
regarding governance and administration of the PPA,and obligates each Participant to pay for its Project
Participation Percentage share of all Project Costs, Administrative Services Costs, scheduling
coordination costs, and all other costs related to the PPA; and
WHEREAS: Upon full execution of the Third Phase Agreement, NCPA will be authorized to enter into
the PPA on behalf of the Participants, and such PPA shall be deemed an NCPA Project by the
Commission pursuant to the Amended and Restated Facilities Agreement; and
WHEREAS: Grace has agreed to sell energy, capacity rights, and associated environmental attributes
produced by the Grace Orchard Energy Center photovoltaic facility in Riverside County, CA that yields
an average of 8,521 MWh/year for a total cost of $362,256/year for the City over the term of the
agreement; and
WHEREAS: NCPA proposes to enter into the PPA to acquire certain energy, capacity rights and
environmental attributes produced by the Grace Orchard Energy Center Project on Behalf of the
Participants. This activity would not result in a physical change to the existing facilities and therefore,
would not result in a direct or reasonably foreseeable indirect change to the physical environment.
Thus, this activity is not a "project" for purposes of Section 21065 of the California Environmental
Quality Act, no environmental review is necessary; and
WHEREAS: The NCPA Commission adopted Resolution 24-63 on May 23, 2024 approving the Grace
Orchard Energy Center, LLC PPA and Third Phase Agreement for Renewable Power Purchase
Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah, that the City Manager is
authorized, on behalf of the City of Ukiah, to enter into the Agreement for Transmission Owner Rate
Case Program with Northern California Power Agency, including any non-substantial modifications to
the Agreement.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ukiah on the 17th day of
July 2024, by the following roll call vote:
AYES: Councilmembers Rodin,Sher, Crane, and Mayor Duenas
NOES: None
ABSENT: Councilmember Orozco
ABSTAIN: None
!osi4ina uenas, May
ATTEST:
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Kristine Lawler, City Clerk
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